Estonia & Latvia & Lithuania: Royal Unibrew A/S to optimize the production structure in the Baltic countries
The Supervisory Board of Royal Unibrew A/S has decided August 09 to optimise the production structure in the Baltic countries as part of the strategy to realise the Mach II targets established for this region, the company released August 09.
The decision will imply, among other things, that the production in Vilnius will be terminated by the end of 2006 and transferred to the Kalnapilis brewery, also in Lithuania. The head office of the Lithuanian company will continue to be located in Vilnius.
The closure of the brewery is expected to result in an extraordinary (“Special Items”) charge in the financial statements of the Group for 2006 of some DKK 25 million (some DKK 15 million relating to depreciation, amortisation and impairment losses and some DKK 10 million relating to costs of closure) as compared to the previously announced expectations for the consolidated profit before tax for 2006.
The closure is expected to affect the individual components of Royal Unibrew’s consolidated financial statements for 2006 as follows (figures in DDK million): Operating profit: 0, “Special Items: -25, EBITDA: -10, EBIT: -25, Profit before tax: -25.
The financial consequences will be incorporated into the Company’s financial statements for Q3.
It is expected that during the coming years disposal of the land and buildings of the brewery, which are situated centrally in Vilnius, may be made for other purposes at a material profit in the order of DKK 60-90 million (estimated EBIT effect of DKK 30-60 million in the year of sale).
The optimisation of Royal Unibrew’s production structure in the Baltic countries is expected to increase the Group’s EBITDA and EBIT by some DKK 14 million and DKK 10 million, respectively, on an annual basis with full effect from 2008.
In connection with the adjustment of Royal Unibrew’s production structure in the Baltic countries, the other group breweries in Lithuania (Kalnapilis) and Latvia (Lacplesa) will be upgraded and the annual production capacity will be increased by some 300,000 hectolitres to meet the continued increase in demand for our products in the region.
In 2007 and 2008, investments in the Baltic countries are expected to amount to some DKK 100 million and DKK 30 million, respectively. Significant parts of the equipment from Vilnius will therefore be transferred to the other group breweries in the Baltic countries.
The optimisation of the production structure is expected to have a positive effect on the free cash flow of the region as of 2008.
Wstecz
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